Companies get the ring of confidence

In the second UK edition of its global Job Index Survey, global recruitment and human resources consultancy TMP Worldwide questioned 1,200 businesses on their recruitment track record for the first half of 2002.

The research revealed that 26 per cent of Yorkshire and Humberside's firms had made redundancies in the first half of 2002. It also found 12 per cent had slashed training budgets, with 15 per cent cutting staff bonuses and nine per cent reducing other perks such as pensions.

Just one per cent of companies in the region said they had not taken any action - such as salary reductions, redundancies or staff bonus cuts - during the first half of the year.

Looking to the future, 34 per cent of firms in the region said they expect overall staff numbers to increase during the next quarter.

Just 16 per cent anticipate a decrease, while 44 per cent expect no change to staff levels.

Of the 37 per cent of firms which reported bad news such as redundancies in the last few months, more than half, 51 per cent, said they felt this would not affect their employer image.

Just 26 per cent of firms felt redundancies would have a negative impact with what employees, and prospective employees, think of them.

Chris Herrmannsen, chief executive officer of TMP, said: "It's a fact of business life that companies have had to make harsh decisions during the last few months.

"However, it's nave in the extreme to believe that taking such decisions won't affect a firm's reputation as an employer.

"Economic recovery, and therefore renewed demand in the labour market, will inevitably come and when this happens, the war for talent will be back on.

"The companies best equipped to succeed in this battle, and therefore in business, will be those that have the best employer brands.

"Our research shows that too many businesses in Yorkshire and Humberside are too casual about the value of these brands and how to develop them. Companies need to act now or risk losing out badly."